Peter Kinsella

The yen touched the lowest level in a week against the dollar after the Bank of Japan maintained unprecedented monetary stimulus as the U.S. Federal Reserve moved toward raising borrowing costs for the first time since 2006.

The euro fell to a two-year low as European Central Bank President Mario Draghi deepened his commitment to a stimulus program and signaled policy makers are ready to implement additional measures if needed.

The greenback pared gains amid speculation it gained too much, too fast, and as U.S. Treasury yields fell. The currency jumped earlier as a private report showed U.S. companies added more than 200,000 workers for a sixth month.

The dollar strengthened a fifth day versus the euro as U.S. consumer spending rose the most in three years a day after the Federal Reserve scaled back bond purchases that weaken the greenback and support global asset prices.